More hints of U.S. trade détente with Canada, EU

Antoinette Montgomery

But a leader of this country's main milk-producing lobby group said Monday his industry has given enough in previous trade deals and will not tolerate more concessions.

Wiens declined to say what action the organization would take if an updated NAFTA deal gave the US a greater chunk of the Canadian market, but did not rule out campaigning against ratification of the agreement, or the Liberal government. His announcement came with an ultimatum for Canada - join the U.S. -Mexico pact or suffer the consequences of punishing American tariffs on the auto sector.

Solemn cross-border remembrances slammed headlong into the present-day fight over free trade Tuesday as Canada and the US resumed their protracted effort to rescue NAFTA on the 17th anniversary of the September 11 terrorist attacks in Washington and New York City.

Prime Minister Justin Trudeau has said the mechanism is crucial to a new NAFTA, but Mexico already has agreed to drop it.

"We have been very clear on that, that there can not be more access given", Wiens said in a telephone interview.

He told reporters in Winnipeg on Tuesday, "We are better off having no NAFTA than a bad deal for Canada".

Trudeau, facing elections in 2019, said on Sunday (June 10) that Canada "will not be pushed around", triggering a fierce attack from Trump and his advisers, on Tuesday (June 12). While China/US tensions have seemed to support the dollar, with the US seeing as to have the upper hand, NAFTA progress should be CAD and commodities which would ultimately weigh on the greenback and potentially lift the price of gold - well, at least that is what we have seen in the late hours of US trade.

"Clifford Sosnow, a Canadian trade lawyer based in Ottawa, said the talks are happening on two levels, one behind the scenes where the hard work is happening and the other where the politicking, the spinning and the hurling of insults" is happening. Asked if it would be gone from a NAFTA deal, he said, "I think it should be".

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Trudeau meets on Tuesday with the Dairy Farmers of Canada, which suspect he might be ready to sell them out.

"And one of the things that I think we are accomplishing in this agreement is a better deal for Canadian and USA workers in the auto sector".

"We have all been dealing in good faith", he said. "It would be a good modernized deal if Canada is brought into it".

Freeland returned to Washington on Tuesday to continue meeting with her United States counterpart. "That's not who we are", Craft said in prepared remarks. "He's railed against this thing (NAFTA) and they've been at the negotiating table for now over a year. We're just going to stay working constructively to get to that win, win, win that we know is there", he said in the interview.

Experts note that the desire to make a trade deal happen is influenced by upcoming political events, including the US midterm elections in November, a transition of presidential power in Mexico in December and next year's Canadian election.

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